Swarovski’s Sparkle Strategy: How This Iconic Brand is Redefining Luxury in a Changing World
Swarovski entered 2025 with a dazzling glow, its jewelry division boasting a 9% year-over-year growth in 2024. This success story is particularly striking in the US market and fueled by the skyrocketing popularity of lab-grown diamonds, whose sales more than doubled. But here's where it gets controversial: can lab-grown diamonds truly rival the allure of mined diamonds, or are they simply a passing trend?
Alexis Nasard, Swarovski’s CEO since July 2022, is confident this momentum will continue. The brand’s 2026 strategy hinges on a delicate balance: preserving its reputation for exquisite craftsmanship while embracing evolving design trends and shifting consumer behaviors. Think jewelry that transitions seamlessly from boardroom to bar, a trend Nasard believes is reshaping the market.
And this is the part most people miss: Swarovski’s success isn’t just about glittering gems; it’s about accessibility. The brand strategically segments its offerings into low, medium, and high price points, mirroring the watch industry. Interestingly, the mid-range segment is experiencing the strongest growth, a niche where Nasard notes Swarovski faces minimal competition.
Lab-grown diamonds, once a niche market, have become a cornerstone of Swarovski’s strategy. Nasard highlights their ability to attract new customers, even those traditionally loyal to mined diamonds. Some of these newcomers, intrigued by the brand’s innovative approach, go on to explore Swarovski’s iconic crystal pieces, creating a ripple effect of brand loyalty.
This strategic positioning as “pop jewelry” allows Swarovski to actively engage with and influence the cultural zeitgeist, ensuring its relevance and freshness. Think capsule collections with celebrities like Ariana Grande, whose collaboration became the brand’s best-selling capsule ever.
This approach resonates particularly well in the US, Swarovski’s largest market. Nasard believes American consumers will continue to embrace Swarovski’s jewelry as long as the job market remains robust.
BoF: Luxury fashion has faced challenges due to price hikes exceeding inflation. How is Swarovski navigating this landscape, and what strategies are you employing to engage consumers?
Alexis Nasard: We’ve consciously kept our pricing in line with inflation. Our focus is on fostering strong connections with local customers in key metropolitan areas within established markets like Europe and the US, as well as in burgeoning markets such as South Korea, Brazil, Japan, and Mexico. These cosmopolitan hubs drive trends, so we’ve adopted a city-focused strategy. We aim to transform our stores into destinations, offering experiences that encourage repeat visits and self-purchases – a trend we see growing among women, which we find empowering and actively encourage. By combining captivating product design, cultural relevance, and a seamless shopping experience, we aim to create reasons for consumers to shop beyond holidays or special occasions. In this context, jewelry becomes a medium for everyday self-expression, even during economic downturns. While jewelry is ultimately discretionary spending, in markets like the US, where consumers have disposable income and our value proposition resonates, they will continue to invest.
BoF: Some luxury jewelry brands are streamlining their assortments to manage inventory and minimize risk. How does Swarovski approach its product range, and are you seeing any shifts in consumer demand influencing this strategy?
AN: At Swarovski, we maintain a diverse price range and design variety, but we’re highly selective about our offerings. Our assortment reflects both creative innovation and consumer expectations. The mid-tier complexity segment has emerged as a powerhouse, offering a unique blend of originality and accessible pricing. In a market where competitors may overextend or dilute their offerings, our strategy is to curate thoughtfully, ensuring each piece resonates with customers and reinforces our cultural relevance.
BoF: You mentioned mid-tier complexity as a key growth driver. Can you elaborate on why this segment is performing so well and its place within the broader jewelry market?
AN: Mid-tier complexity bridges the gap between entry-level pieces and high jewelry. It allows customers to access designs that are both original and emotionally resonant without the exorbitant price tag of high jewelry. This segment faces relatively little competition and offers a compelling value proposition. Customers recognize the creativity and craftsmanship in these pieces, making them a popular choice for self-purchasers. It’s a segment that embodies both aspiration and accessibility, perfectly aligning with the evolving desires of today’s consumers.
Consumers aren’t just buying a product; they’re buying into a cultural narrative and an emotional experience.
BoF: How is Swarovski responding to the rise of women buying jewelry for themselves, particularly with the growing popularity of lab-grown diamonds?
AN: Women are increasingly embracing jewelry as a form of self-expression, and lab-grown diamonds play a significant role in this shift. These diamonds offer exceptional quality, design versatility, and a price point that makes them accessible. Their sustainability credentials, utilizing renewable energy and recycled metals, further resonate with self-purchasers. We’ve observed that stores offering lab-grown diamonds attract new customers who then explore other Swarovski lines, like our crystals, creating a positive ripple effect across the business.
BoF: Lab-grown diamonds are becoming increasingly mainstream. How do you envision their role evolving within the luxury jewelry market?
AN: Lab-grown diamonds are undeniably a cornerstone of jewelry’s future. They offer the same brilliance and durability as mined diamonds while opening up exciting design possibilities. They allow us to engage customers seeking creativity, sustainability, and value. The US is leading the charge in adoption, with over half the diamond market now lab-grown, and we anticipate this trend will continue globally.
BoF: Cultural trends are increasingly influencing jewelry design. Which trends do you foresee shaping the market in 2026?
AN: We see several intersecting trends. Jewelry designed for all-day wear is gaining traction, seamlessly transitioning from professional settings to leisure activities. Multi-metal pieces and multicolored crystals are growing in popularity, allowing for more playful and versatile styling. Men’s jewelry is slowly gaining acceptance, reflecting broader shifts in gender expression, though it still represents a small portion of the market – women will remain the primary jewelry consumers. Pearls and charms are also being reimagined for contemporary use beyond traditional settings.
Customization, while experiencing a slight uptick a few years ago, isn’t a game-changer for us. We offer some customization options, but it remains a niche aspect of our business and the market as a whole. Most customers gravitate towards our standard collections.
BoF: China remains a complex market for luxury brands. How have the market’s current dynamics influenced Swarovski’s strategy there?
AN: China presents unique challenges due to demographic shifts, macroeconomic pressures, and regulatory uncertainty. High youth unemployment in major cities and a shrinking younger consumer base (Millennials and Gen Z, who represent half the domestic luxury market) are cause for concern. These factors, coupled with policy unpredictability and geopolitical tensions, necessitate a more cautious approach. We maintain a presence in key cities with designs that resonate locally, ensuring brand relevance while mitigating disproportionate risk.
BoF: The US seems to be a major growth driver. What factors contribute to your success there?
AN: In the US, discretionary spending remains robust due to stable employment levels and consumers prioritizing categories like jewelry. Additionally, Swarovski’s brand perception is at an all-time high in the US. Americans strongly connect with the ‘joyful exuberance’ our jewelry embodies. With fewer than 250 stores in the US, there’s ample room for expansion, which fuels our optimism.
BoF: With branded jewelry gaining dominance globally, how does Swarovski differentiate itself in this competitive landscape?
AN: Branded jewelry offers more than just adornment; it provides creativity, cultural connection, and a sense of participation in a broader lifestyle. These are key differentiators from unbranded jewelry. Consumers aren’t just buying a product; they’re buying into a cultural narrative and an emotional experience. Swarovski’s strategy emphasizes brand consistency, creativity, and engagement with the cultural zeitgeist, particularly pop culture, through ambassadors like Kim Kardashian, Bella Hadid, and Ariana Grande, whose capsule collection was our best-selling ever. Tapping into these elements sets us apart from unbranded alternatives. While value considerations remain important in some markets, like secondary cities in emerging markets such as India, where unbranded jewelry may be favored during tough economic times, globally, branded jewelry will prevail in the long run.
BoF: How do you see jewelry consumption evolving between investment pieces and everyday wear? Are these categories mutually exclusive?
AN: Everyday wear and investment pieces aren’t mutually exclusive; they will continue to coexist. Economic cycles and consumer segments influence preferences, but jewelry fundamentally serves multiple purposes. Middle-class consumers in emerging markets may prioritize value and longevity during economic downturns, while socialites in established markets seek instant gratification. We cater to both ends of this spectrum.
Food for Thought: As lab-grown diamonds become more prevalent, will they completely replace mined diamonds, or will there always be a market for the perceived rarity and tradition associated with mined stones? The debate is far from over, and it’s fascinating to see how consumer preferences will evolve in this dynamic landscape.
This interview has been edited and condensed.
This article first appeared in The State of Fashion 2026 (https://www.businessoffashion.com/reports/the-state-of-fashion-industry/), an in-depth report on the global fashion industry, co-published by BoF and McKinsey & Company.
